E-commerce Glossary

Cohort Analysis

Study of behavior patterns among customer groups acquired in the same period.

Cohort analysis groups customers by first order date and tracks their behavior over time (repurchase, average cart, retention). For example, the January cohort shows that 30% of customers repurchase by month 3. Comparing cohorts reveals whether your actions are genuinely improving retention. It's the most reliable tool for measuring the long-term health of your customer base.

Related terms

AOV (Average Order Value)Average amount spent per order in your store.See definition ARPU (Average Revenue Per User)Average revenue generated per user over a given period.See definition Blended CACAverage acquisition cost including all marketing channels.See definition Blended ROASOverall return on all advertising spend combined.See definition CAC (Customer Acquisition Cost)Total cost to acquire a new customer.See definition Churn RatePercentage of customers lost over a given period.See definition

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